Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald’s $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?

Question

Soopergood Insurance
Option
Monthly Premium
Employer Contribution
Health Insurance
$345
65%
Dental
$38
50%
Vision
$23
75%
a.
$141.75
b.
$145.50
c.
$149.50
d.
$260.50

Answer 1

To determine how much Gerald will pay each month towards his health insurance after adding the dental and vision options, we need to calculate the contributions from both Gerald and his employer for each type of insurance.

1. Health Insurance Contribution:

• Monthly Premium: $345
• Employer Contribution: 65% of $345

Gerald's Contribution: \[ \text{Gerald's Contribution for Health Insurance} = 345 \times (1 - 0.65) = 345 \times 0.35 = 120.75 \]

2. Dental Insurance Contribution:

• Monthly Premium: $38
• Employer Contribution: 50% of $38

Gerald's Contribution: \[ \text{Gerald's Contribution for Dental} = 38 \times (1 - 0.50) = 38 \times 0.50 = 19.00 \]

3. Vision Insurance Contribution:

• Monthly Premium: $23
• Employer Contribution: 75% of $23

Gerald's Contribution: \[ \text{Gerald's Contribution for Vision} = 23 \times (1 - 0.75) = 23 \times 0.25 = 5.75 \]

Total Contribution:

Now, we add up all of Gerald's contributions:

\[ \text{Total Monthly Payment} = \text{Gerald's Contribution for Health} + \text{Gerald's Contribution for Dental} + \text{Gerald's Contribution for Vision} \]

\[ \text{Total Monthly Payment} = 120.75 + 19.00 + 5.75 = 145.50 \]

Thus, the total amount Gerald will pay each month towards health insurance is $145.50.

The correct answer is b. $145.50.